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Ask HN: How can I get investor intros in Berlin?

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Re: Ask HN: How can I get investor intros in Berlin?

#11

Post by canttestthis »

paskster wrote: post #5
anotheryou wrote: post #4

Earlier quoted context omitted.

So there are no investors for early startups? (honest question, not a rethorical one) There is still a lot between 100k revenue and not profitable at all. What about something like barely selfsustaining (but by that proven to be somewhat profitable) with 2 employees? Or making 10k with a 2-man startup?

There are a lot of Investors in Berlin. But without Social Proof, it would probably be a waste of time trying to approach them. If you make about 100k revenue (or if you have otherwise significant traction), you can not only approach investors in Berlin but also ouside, which kind of solves the "Social Proof" problem. If you are barely selfsustaining, then please stay bootstrapped and grow your business. Otherwise th…

Could you briefly explain how "social proof" applies to startups?

Re: Ask HN: How can I get investor intros in Berlin?

#12

Post by pyvpx »

paskster wrote: post #3

Please don't waste your time pitching to investors in this position in Berlin. If you make X "Very interesting. Let's keep in touch and come back when you make 5 * X EUR revenue." And if make X >= 100.000 EUR revenue per month, then you most likely don't need 50-75K. One thing in Berlin ist crucial: Social Proof. If you have it, you can raise 5 Mio EUR with basically zero traction and if you don't have it, it will be…

could you clarify what you mean by Social Proof?

Re: Ask HN: How can I get investor intros in Berlin?

#13

Post by paskster »

canttestthis wrote: post #11
paskster wrote: post #5

Earlier quoted context omitted.

There are a lot of Investors in Berlin. But without Social Proof, it would probably be a waste of time trying to approach them. If you make about 100k revenue (or if you have otherwise significant traction), you can not only approach investors in Berlin but also ouside, which kind of solves the "Social Proof" problem. If you are barely selfsustaining, then please stay bootstrapped and grow your business. Otherwise th…

Could you briefly explain how "social proof" applies to startups?

If you have Social Proof, you know you have it. If you are not sure, then you don't have it.

Social Proof could mean: - You are a Serial Entrepreneur - A famous Business Angel invested in your company - You graduated from a University with a great Alumni Network - etc.

Basically if a potential investor evaluates your Market, Traction or Business Model, then you already lost. If a potential investor invests, because he thinks other investors want to invest, then this is Social Proof.

For example you are talking one hour with a potential investor:

If you talk 90 % of the time about who else is investing and about how to structure the investment round, then you have Social Proof. If you instead talk 90 % of the time about how big the market is, what your revenue model will be any why your churn rate only decreased 2 % in the last month, then you don't have Social Proof.

Also if the potential investors talks about making the investment bigger to increase your run rate and increase your leverage for a Series B, you have Social Proof. If instead the potential investors is asking you if you can decrease your burn rate or recommends you to raise a smaller amount, then you don't have Social Proof.

EDIT: Added one paragraph

Re: Ask HN: How can I get investor intros in Berlin?

#14

Post by ddorian43 »

pyvpx wrote: post #12
paskster wrote: post #3

Please don't waste your time pitching to investors in this position in Berlin. If you make X "Very interesting. Let's keep in touch and come back when you make 5 * X EUR revenue." And if make X >= 100.000 EUR revenue per month, then you most likely don't need 50-75K. One thing in Berlin ist crucial: Social Proof. If you have it, you can raise 5 Mio EUR with basically zero traction and if you don't have it, it will be…

could you clarify what you mean by Social Proof?

https://en.wikipedia.org/wiki/Social_proof

Re: Ask HN: How can I get investor intros in Berlin?

#16

Post by pjc50 »

jorgemf wrote: post #9

I don't want to sound negative and I might be wrong in my assumptions but 50-75k sounds like something you can get from FFF (family, friends and fools) or supply it with your time. So the question for me is why an investor is going to put money in you if your family and friends don't do it. A good idea to approach investor is through other startups, people that already know them. You can meet startups entrepreneurs i…

I don't know why this is downvoted when it's got a valid answer in it: strangers tend not to be good for getting investments that size. Either crowdfund or get friends & family to invest.

Re: Ask HN: How can I get investor intros in Berlin?

#17

Post by jjpe »

jbverschoor wrote: post #10
bitL wrote: post #6

Earlier quoted context omitted.

This. And it's not just Berlin, it's the whole Germany including banks - they will all tell you please make 1M, then we will lend you 1M with your 1M as a collateral. Simply forget it unless you managed to choose your parents wisely (i.e. rich or influential).

Expand to europe. Ot at least the Netherlands

Where in the Netherlands would be a good idea to check out?

Re: Ask HN: How can I get investor intros in Berlin?

#18

Post by softwarelimits »

If you would like to stay as independent as possible and keep your business in the long term, I would recommend to try with one of the currently ongoing EU investment programs - there is also one fond for smale-scale investment (like single person startups etc.) - definitely it is possible to get "free money" without high risk atm, but you must do the paperwork yourself:

http://www.berlin.de/sen/europa/europa-in-berlin/eu-foerderu...

Re: Ask HN: How can I get investor intros in Berlin?

#20

Post by raverbashing »

paskster wrote: post #3

Please don't waste your time pitching to investors in this position in Berlin. If you make X "Very interesting. Let's keep in touch and come back when you make 5 * X EUR revenue." And if make X >= 100.000 EUR revenue per month, then you most likely don't need 50-75K. One thing in Berlin ist crucial: Social Proof. If you have it, you can raise 5 Mio EUR with basically zero traction and if you don't have it, it will be…

> One thing in Berlin ist crucial: Social Proof

Then work on that. Or try to partner with someone who has that

How? Mingle. Go to meetings. Network "horizontally" (in your tech segment) and "vertically" (in your business segment).

One way you're not getting that is by being the foreigner just off the plane (or even there for a couple of years) that can't speak German

There's actually a funny series of bilingual books about "How to be Berliner/How to be German" that are kind of tongue-in-cheek but it gets on the overall mindset

And as someone said below, something like < 100k can be gotten from FFFs, so look onto that.

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